Pangaea Logistics Solutions Announces Long-Term Contract of Affreightment Utilizing Ice-Class Vessels
Pangaea Logistics Solutions, Ltd. (“Pangaea” or the “Company”) (NASDAQ: PANL) announced today that it has entered into a three to five-year Contract of Affreightment (“COA”) with a major international steel producer that will utilize its ice-class tonnage and has the potential to produce up to $135 million in revenue over five years.
The first shipment is scheduled to commence in the summer of 2015 and the contract provides for up to 30 shipments per year, each generating nearly $1 million in revenue. Accordingly, the COA is expected to produce approximately $80 million in revenue over the initial three year term, and has the capacity to contribute up to $135 million in revenue over its maximum term. The performing vessels will be loading on the east coast of Canada and discharging in Europe and will be operated by Pangaea Logistics Solutions’ ice-class specialist subsidiary, Nordic Bulk Carriers, which is based in Copenhagen.
“Today’s announcement showcases how our unique expertise in the ice-class trades allows us to secure high-value COAs that are mutually beneficial to us and our partners, despite the ongoing turbulence in the dry bulk markets” said Ed Coll, Chairman and Chief Executive Officer of Pangaea Logistics Solutions. “We are very pleased by today’s announcement and look forward to continuing to grow our business with a focus on accretive and stable COAs related to specialized trades where our differentiated capabilities allow us to add meaningful value.”
About Pangaea Logistics Solutions, Ltd.
Pangaea Logistics Solutions Ltd. provides logistics services to a broad base of industrial customers who require the transportation of a wide variety of dry bulk cargoes, including grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone. The Company addresses the transportation needs of its customers with a comprehensive set of services and activities, including cargo loading, cargo discharge, vessel chartering, and voyage planning. Learn more at www.pangaeals.com.
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